Elon Musk’s xAI Partners with Saudi Arabia to Develop 500MW AI Data Centre Powered by Nvidia Chips
Saudi Arabia is expanding its ambitions in artificial intelligence with a major new partnership involving Elon Musk’s xAI. The company will build a 500-megawatt Saudi xAI data centre in collaboration with Humain, the kingdom’s state-backed AI developer. Musk made the announcement at the US–Saudi investment forum in Washington. Nvidia CEO Jensen Huang joined him on stage, which signalled the scale and seriousness of the project. As a result, Saudi Arabia now moves closer to becoming a central hub for global AI infrastructure.
A 500MW Data Centre Powered by Nvidia Chips
The planned data centre will rely heavily on advanced Nvidia chips. These chips will drive high-performance computing for training large-scale AI models. The 500-megawatt capacity is enormous. It is roughly equal to the yearly electricity consumption of several hundred thousand homes. Therefore, the facility stands among the largest AI projects announced anywhere this year.
This will be xAI’s first major data centre outside the United States. The company selected Saudi Arabia due to its abundant energy supply and wide land availability. Furthermore, the kingdom has been aggressively positioning itself as a global AI contender. The combination of power, space, and state support made the location an attractive choice. Consequently, xAI expects smooth development and long-term growth.
Saudi Arabia’s Growing AI Footprint
Saudi Arabia has made rapid advances in AI infrastructure. The government has invested in supercomputers, robotics platforms, and advanced data hubs. The Saudi xAI data centre adds another layer to this expanding ecosystem. It also fits neatly into Crown Prince Mohammed bin Salman’s strategy to diversify the economy and reduce reliance on oil revenues.
In addition, Nvidia is increasing its footprint in the kingdom. The company is collaborating with Humain on several technology initiatives. These include deploying the Nvidia Omniverse platform for digital factories and robotics. Nvidia is also working on supercomputers designed to help with quantum computing simulation and error-correction tasks. As a result, the kingdom is assembling a strong mix of AI capabilities across multiple industrial sectors.
Partnership Strengthened by US–Saudi Cooperation
The United States has supported the new collaboration. According to forum officials, the U.S. administration has agreed to provide early approvals for advanced AI chip exports needed for the project. This demonstrates Washington’s willingness to deepen technological ties with Riyadh during a period of intense global competition in AI. In addition, it reflects the mutual benefits both sides expect from cooperation in high-performance computing.
The announcement also underscores the growing alignment between xAI, Saudi Arabia, and Nvidia. Each partner brings a critical advantage. xAI contributes research expertise and model development. Saudi Arabia provides energy, land, and long-term capital. Nvidia delivers essential hardware and software tools. Therefore, the project creates a balanced and forward-looking alliance.
Infrastructure Designed for High-End AI Needs
The Saudi xAI data centre will support a wide range of applications. It will host large-language models, robotics research, digital-twin simulations, and long-term AI experiments. Furthermore, the facility will include high-security networking, cooling systems, and backup energy channels. Saudi planners want the site to operate at global standards. They also intend to future-proof it for the next generation of AI chips.
Because the project leverages the kingdom’s low-cost energy, it reduces operational expenses. This will help xAI run compute-intensive training jobs that require constant power and cooling. In addition, the centre’s size may attract other AI companies looking for large training clusters. As a result, Saudi Arabia could become a regional AI anchor over the next decade.
A Major Step in Saudi Arabia’s Vision for AI Leadership
Saudi Arabia has already hosted global AI summits, built advanced research centres, and launched tech-focused economic zones. Now, with the Saudi xAI data centre, the kingdom signals a new phase in its digital transformation. The project supports Vision 2030 goals by creating a high-value technology sector that can operate well beyond the oil economy.
In addition, the partnership strengthens Saudi Arabia’s ties with major U.S. firms at a time when global AI competition is intensifying. Therefore, the new alliance provides both strategic and economic advantages for Riyadh. It also places xAI in a strong position to expand into emerging markets.
Saudi’s Decisive Moment
The partnership between xAI, Nvidia, and Humain marks a decisive moment for the region’s technology ambitions. The Saudi xAI data centre brings global-scale computing power to the kingdom and deepens ties with the United States. Furthermore, it positions Saudi Arabia as a rising hub for AI innovation. As the 500MW project moves forward, Saudi Arabia now stands at the frontier of artificial intelligence infrastructure and development, ready to compete with established global players.
